Organic food consumption is steadily growing across a variety of product categories. While consumers are increasingly focused on the healthiness of the food they purchase, companies are experimenting alternative ways to communicate and guarantee the organic and health-related benefits of their products. This study explores the effect of different combinations of front-of-package (FoP) components on premium price. Specifically, we focus on the interaction and visual salience of FoP organic claims, health-related claims, and third-party organic certifications. Based on an analysis of grocery sales data and product packaging visuals, the study identifies FoP component combinations that could maximise premiums. We offer insights to marketing managers and companies involved in enhancing the communication of organic food benefits to consumers

F. Zerbini

L. Orsi

L. Zanderighi

M. Maggioni

English

AIR Universita degli studi di Milano

ORGANIC AND HEALTHY: ASSESSING THE IMPACT OF CLAIMS AND 
THIRD-PARTY CERTIFICATIONS ON PREMIUM PRICE 
 
Isabella Maggioni* 
Department of Marketing 
ESCP Europe 
Corso Unione Sovietica, 218 bis 
10134 Torino, Italy 
Luigi Orsi 
Dipartimento di Scienze e Politiche Ambientali 
Università degli Studi di Milano 
Via Celoria, 2 
20133 Milano, Italy 
 
Luca Zanderighi 
Department of Economics, Management and Quantitative Methods 
Università degli Studi di Milano 
Via Conservatorio, 7 
20122 Milano, Italy 
Fabrizio Zerbini 
Department of Marketing 
ESCP Europe 
79 Avenue de la République 
75011 Paris, France 
 
 
 
Conference track: Consumer Behaviour 
 
 
 
*corresponding author 
 
ORGANIC AND HEALTHY: ASSESSING THE IMPACT OF CLAIMS AND 
THIRD-PARTY CERTIFICATIONS ON PREMIUM PRICE 
Abstract 
Organic food consumption is steadily growing across a variety of product categories. 
While consumers are increasingly focused on the healthiness of the food they purchase, 
companies are experimenting alternative ways to communicate and guarantee the 
organic and health-related benefits of their products. This study explores the effect of 
different combinations of front-of-package (FoP) components on premium price. 
Specifically, we focus on the interaction and visual salience of FoP organic claims, 
health-related claims, and third-party organic certifications. Based on an analysis of 
grocery sales data and product packaging visuals, the study identifies FoP component 
combinations that could maximise premiums. We offer insights to marketing managers 
and companies involved in enhancing the communication of organic food benefits to 
consumers.   
Introduction 
The organic food market is rapidly growing fuelled by an increasing consumer interest 
in how food is produced and processed. While consumers are constantly looking for 
healthier and less processed food, companies are experimenting new ways to 
communicate such attributes and features. Tapping into this opportunity, food 
manufacturers have introduced front-of-packaging (FoP) labels and claims to promote 
the organic and health-related attributes of their products. Companies’ efforts in 
communicating natural and organic product qualities are supported by regulators’ and 
third-party agencies’ certifications that aim to assure quality and prevent the misuse of 
organic claims and labels. The inclusion of FoP claims and certifications to promote 
the organic, natural and healthy qualities of food products is a common practice in the 
FMCG industry. However, there is limited research exploring the role of different FoP 
claims and certifications on consumer purchase choices and willingness to pay.  
The ubiquitous presence of organic and health-related claims combined with third-party 
certifications on the front of food packages makes it difficult for many brands to break 
the clutter from a design perspective (Berry et al., 2017) and could at the same time 
overwhelm consumers with potentially unnecessary information. Although attention is 
commonly referred to as a catalyst for further information processing and decision 
making (Bialkova et al., 2014), companies should be cautious when designing packages 
primarily aiming at attracting consumers' attention. This could indeed backfire by 
encouraging consumers' scepticism towards food labels (Bialkova et al., 2016). 
Given the theoretical relevance and managerial importance of this issue, the purpose of 
this study is to examine: (1) how FoP organic and health-related claims influence 
consumers’ willingness to pay and (2) how third-party organic certifications could 
potentially moderate the direct influence of those claims on premium price.  
 
Background 
Organic and Health-related claims 
A successful FoP label policy focused on organic and health-related attributes enhances 
well-informed food choices and attracts consumers' attention, while determining 
product choice (Bialkova et al., 2014). Health-related claims have been found to 
positively affect the perceptions of customers (Andrews et al., 2012; Bialkova et al., 
2016). However, such attributes have also been found to be often ignored or attract 
limited attention when shopping for grocery products (Grunert et al., 2010). A series of 
empirical studies suggest that FoP health and nutrition-related claims are associated 
with an increased consumer demand and firm financial performance (Cao & Yan, 
2016), as well as having positive effects on product evaluations and purchase intentions 
(Balasubramanian & Cole, 2002; Chandon & Wansink, 2007). Organic claims have 
been conceptualised as a specific type of process claim which defines how a given food 
is produced and processed (Chrysochou & Grunert, 2014). Such claims have been 
shown to influence consumers’ perceived product healthfulness and affect purchase 
intentions (Bauer et al., 2012; Chrysochou & Grunert, 2014), leading to a preferences 
for natural food, which are believed to be healthier than conventional food (Rozin, 
2005). Berry et al. (2017) explores the role of both organic and health-related claims 
on inferred product attributes and purchase intentions, revealing that consumers’ 
inferences about the organic nature of a product have the strongest indirect effect on 
such outcomes.  
Based on past research, we suggest that more visually salient FoP claims related to the 
organic nature and the healthiness of food products result in positive consumer and 
company-related outcomes. These include an increased willingness to pay as a result of 
an effective and efficient communication of the product key benefits, which in turn 
leads to a greater premium price.  
H1: A more visually salient FoP (a) organic claim; (b) health-related claim have a 
positive impact on premium price. 
The role of third-party organic certifications 
The attribute organic has been the focus of several regulations in the European Union. 
The EU Organic Certification aims at guaranteeing food quality, animal welfare and 
environmental protection along the supply chain and is granted when agricultural 
systems, farm management and food production combine the best environmental 
practices, a high level of biodiversity, the preservation of natural resources, and the 
application of high animal welfare standards (834/2007/EC).  
Being classified as credence good, organic food may be particularly susceptible to 
scepticism and lack of trust among consumers who cannot directly verify the actual 
organic nature of a product (Gerrard et al. 2013). Certifications issued by a regulator 
body or an independent third-party could be a means of overcoming such scepticism. 
However, research has shown that the presence of a third-party certification does not 
necessarily result in greater consumer trust (Eden et al., 2008). Moreover, consumers 
feel confused about the increasing number and conflicting messages concerning healthy 
eating (Pettinger et al., 2004) and are generally unaware of how the food industry is 
regulated (Gerrard et al., 2013). At the same time, they also appear willing to pay a 
premium for the additional assurance that these certifications provide, suggesting that, 
when recognised, certification logos are valued (Gerrard et al. 2013). 
While claims tend to have a positive effect on product inferences and purchase 
behaviour, third-party organic certifications could alter this effect when presented on 
the front of packaging and either persuade consumers or raise questions about the 
claim’s objectivity and truthfulness (Kozup et al., 2003; Berry et al, 2017). Based on 
this argumentation, the presence and visual salience of a FoP third-party organic 
certification should moderate the effect of organic and health-related claims on 
premium price. Therefore, we propose that: 
H2: The presence of a FoP third-party certification moderates the effects of the visual 
salience of (a) an organic claim, and (b) a health-related claim. Specifically, the 
presence of a FoP third-party certification will reduce the effects of (a) organic claim, 
and (b) health-related claim visual salience on premium price.  
H3: The size of a FoP third-party certification moderates the effects of the visual 
salience of (a) an organic claim, and (b) a health-related claim. Specifically, the size 
of a FoP third-party certification will reduce the effects of (a) organic claim, and (b) 
health-related claim visual salience on premium price. 
Methodology 
A sample of 2583 grocery products was extracted from a nationwide database of 
product labels and packaging visuals and combined with sales data sourced through a 
leading market research agency. The sample covered 22 grocery product categories. 
Product visuals were coded to identify the presence and size of (1) a third-party organic 
certification, (2) an organic claim (e.g. 100% natural, organic, all natural, etc.), (3) a 
health-related claim (e.g. high in fibre, low sugar, fat free). The dependent variable 
Premium price was computed based on unit prices and adopting the following 
approach: (1)									𝑈𝑛𝑖𝑡	𝑝𝑟𝑖𝑐𝑒 = 𝑉𝑎𝑙𝑢𝑒	𝑆𝑎𝑙𝑒𝑠/𝑈𝑛𝑖𝑡	𝑆𝑎𝑙𝑒𝑠𝑃𝑟𝑜𝑑𝑢𝑐𝑡	𝑠𝑖𝑧𝑒	(𝑚𝑙, 𝑔𝑟) 	 (2)								𝑃𝑟𝑒𝑚𝑖𝑢𝑚	𝑃𝑟𝑖𝑐𝑒 = 𝑈𝑛𝑖𝑡	𝑝𝑟𝑖𝑐𝑒 − 𝐴𝑉𝐺	𝑢𝑛𝑖𝑡	𝑝𝑟𝑖𝑐𝑒!"#$%&'( 
Analysis were conducting using multiple linear regression and Hayes’ PROCESS 
Macro (Model 3) to test interaction effects (Hayes, 2017). 
Results 
We assessed the impact of organic claim and health-related claim visual salience on 
premium price through a multiple linear regression model. Both organic claim size 
(β=0.053, ρ<0.05) and health-related claim size (β=0.053, ρ<0.05) show a statistically 
significant and positive effect on premium price, leading to accept H1a and H1b.  
To analyse the interaction effects of organic claim and health-related claim visual 
salience with a FoP third-party organic certification, we conducted a moderated 
moderation analysis using PROCESS Model 3 with a 5,000 sample bootstrapping 
(Hayes, 2017). Both models are significant (FFoPCert (8, 2574)= 11.53 ; FFoPSize (8, 
2574)=16.71). The two-way interaction between organic claim visual salience and 
presence of FoP third-party organic certification is negative and statistically significant 
(β= -0.9966; t=-2.2881; p<0.05), while the interaction between health-related claim 
visual salience and presence of FoP third-party organic certification is statistically non-
significant. This leads to accept H2a and reject H2b. The interaction effect of organic 
claim visual salience and FoP third-party organic certification size on premium price is 
also negative and statistically significant (β= -187.9703; t=-6.7346; p<0.001), while the 
interaction between health-related claim visual salience and FoP third-party organic 
certification size is statistically non-significant. Thus, we accept H3a and reject H3b.  
The analyses also highlight a statistically significant three-way interaction effect among 
organic claim, health-related claim visual salience and FoP third-party organic 
certification size. Specifically, more visually salient organic claims and health-related 
claims combined with a small-sized FoP third-party organic certification result in a 
higher average premium price. The combination of a highly visually salient organic 
claim, a less visually salient health-related claim and a FoP third-party organic 
certification results in the second-highest average premium price.  
Conclusions and managerial implications 
This study’s findings provide insight into the effects of the visual salience of FoP 
components associated with natural and organic grocery products. We tested the impact 
of the visual salience of organic claims, health-related claims, and third-party organic 
certifications on premium price, which was adopted as a proxy of consumers’ 
willingness to pay. The results suggest that an equilibrium among these FoP packaging 
components is required to generate a higher premium price. Generally, a higher visual 
salience of organic claims and health-related claims results in greater premiums. 
However, when these claims are combined with a FoP third-party organic certification 
their effect on premium price varies. Specifically, when there is a FoP third-party 
organic certification, the more salient an organic claim is, the lower the premium price 
becomes. Moreover, the more salient both organic claim and a FoP third-party organic 
certification are, the lower the premium price becomes. We also identify some 
conditions in which premium price is maximised; This occurs when combining highly 
visually salient organic claims and health-related claims with a small-sized FoP third-
party organic certification. These findings assist managers and companies with 
optimising the communication of organic and natural attributes through product 
packaging and to balance the asymmetry in communicating natural, organic and health-
related messages to consumers.  
Acknowledgements 
The authors thank GS1 Italy, Nielsen and Osservatorio Immagino for promoting and 
supporting this research project.  
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Organic and healthy: assessing the impact of claims and third-party certifications on premium price

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